Jerusalem, Israel – BiondVax Pharmaceuticals Ltd. (Nasdaq: BVXV) announced that it has negotiated with the European Investment Bank (the “EIB”) the terms and conditions for restructuring its outstanding 24 million euros loan (the “Loan”). The parties have reached a commercial agreement, which is still subject to formal approval of the new terms by the EIB, which would involve the following:
An extension of the deadline dates from 2023 (20 million euros) and 2024 (4 million euros) until December 2027.
Although the loan has been outstanding since 2018, interest on the loan will not begin to accrue until January 1, 2022 at an annual rate of 7%. Interest payments will be deferred until the new maturity date and will be added to the principal balance at the end of each year during the term of the loan.
$900,000 will be paid by BiondVax as a reduction of principal shortly after the new terms come into effect, and going forward, 10% of any capital increase by BiondVax until maturity will be used to further repay the principal of the loan.
Once commercial sales of BiondVax exceed 5 million euros3% of BiondVax revenue will be paid to the EIB in the form of royalties up to a combined maximum of 2.8 times the initial amount 24 million euros main.
If BiondVax chooses to prepay part of the loan (other than that required by future capital increases), the prepaid amount will be calculated such that the EIB realizes at least 20% IRR on its investment at the time of repayment anticipated.
Amir Reichman, CEO of BiondVax, said: “The EIB has been a loyal partner of BiondVax since 2018, having supported our activities and the construction of our GMP biologics manufacturing site. The contemplated restructuring of our loan with the EIB would remove the short-term obligation to repay the loan and allow us to continue to drive our business forward at full capacity. I am very pleased that our EIB partners have chosen to continue to support BiondVax, allowing us to develop and advance our new nanoscale antibody (NanoAb) businesses related to our recently announced exclusive license agreement and the five-year research collaboration agreement with the Max Planck Institute and Göttingen University Medical Center, Germany. Additionally, the fact that the EIB is considering tying a significant portion of the loan restructuring program to our future sales demonstrates their confidence in our strategy and their confidence in our scientific and management team at BiondVax. I would like to thank the EIB officers involved in these negotiations for their thorough work and collaborative approach.
The EIB is currently undergoing an internal approval process regarding the new loan conditions. If the new terms are approved by the EIB Management Committee, BiondVax and the EIB would aim to sign an amendment agreement during the second quarter of 2022. Until the signature of the final amendment, the new terms described above are not legally binding for the EIB and there is a risk that the final addendum will not be signed.
BiondVax Pharmaceuticals Ltd. (Nasdaq: BVXV) is a biopharmaceutical company focused on developing, manufacturing and marketing innovative products for the prevention and treatment of infectious diseases and other illnesses. Since its inception, the company has completed eight clinical trials, including a phase 3 trial in seven countries and 12,400 participants of its universal influenza vaccine candidate and has built a state-of-the-art manufacturing facility for biopharmaceuticals. With highly experienced leadership in the pharmaceutical industry, BiondVax aims to develop a pipeline of diverse and commercially viable products and platforms, starting with an innovative nanoscale antibody (NanoAb) pipeline. www.biondvax.com.
Joshua E. Phillipson
Phone. : +972 54 223 3860
E: [email protected]
Phone. : +1 212 378 8040
Email: [email protected]
This press release contains forward-looking statements within the meaning of the Private Litigation Reform Act of 1995. Words such as “expect”, “believe”, “intend”, “plan”, “continue” , “anticipate” and similar expressions are intended to identify forward-looking statements. All statements, other than statements of historical facts, included in this press release regarding strategy, future operations, future financial condition, future revenues, projected expenditures, outlook, plans and objectives of management are forward-looking statements. Examples of such statements include, but are not limited to, statements regarding the performance of a definitive amending agreement with the EIB. These forward-looking statements reflect management’s current beliefs with respect to certain current and future events and are subject to various risks, uncertainties and assumptions that could cause actual results to differ materially from those expected by management. BiondVax Pharmaceuticals Ltd. The risks and uncertainties include, but are not limited to, the risk that BiondVax will not execute an additional agreement with the Max Planck Society and the Göttingen University Medical Center or that it will be delayed; the risk that the therapeutic and commercial potential of NanoAbs will not be realized; the risk of delay of preclinical and clinical data of the NanoAbs, if any; the risk that BiondVax and the EIB do not reach an agreement on the restructuring of the loan of European Investment Bank; the risk that BiondVax may not be able to obtain additional capital on attractive terms, if at all; the risk that the European Investment Bank can accelerate loans under its financing agreement with BiondVax; risks related to the COVID-19 (coronavirus) pandemic; BiondVax’s ability to acquire rights to additional product opportunities; BiondVax’s ability to enter into collaborations on terms acceptable to BiondVax or not at all; time of receipt of regulatory approval of BiondVax’s manufacturing facility in Jerusalem, as appropriate or required; the risk that the manufacturing facility cannot be used for a wide variety of applications and other vaccine and treatment technologies, and the risk that drug development will involve a long and expensive process with uncertain outcomes. More detailed information on the risks and uncertainties affecting the Company can be found under the heading “Risk Factors” in the Company’s prospectus supplement filed with the Security and Exchange Commission to December 28, 2021. BiondVax undertakes no obligation to revise or update any forward-looking statement for any reason.